The short-term highway funding extension was passed by the Senate and the House of Representatives and was signed into law by President Obama on July 31, 2015. It contains several important tax provisions (H.R. 3236 (https://www.congress.gov/114/bills/hr3236/BILLS-114hr3236ih.pdf)). The bill changes the due dates for several common tax returns, overrules the Supreme Court’s Home Concrete decision, mandates the reporting of additional information on mortgage information statements, and requires consistent basis reporting between estates and beneficiaries.
Broadly speaking, the act establishes new due dates for partnership and C corporation returns, as well as FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), and several other IRS information returns:
• With respect to the FBAR (a.k.a. FinCEN Form 114), the due date has been pushed up from June 30 to April 15, and for the first time, taxpayers will be allowed a six-month extension.
• The due date for Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, will be April 15 for calendar-year filers, with a maximum six-month extension.
For Partnership returns …
The new due date is March 15 (for calendar-year partnerships) and the 15th day of the third month following the close of the fiscal year (for fiscal-year partnerships). (Currently, these returns are due on April 15, for calendar-year partnerships.) The act authorizes the IRS to allow a maximum extension of six months for Form 1065, U.S. Return of Partnership Income.
For C Corporations …
The new due date is the 15th day of the fourth month following the close of the corporation’s year. (Currently, these returns are due on the 15th day of the third month following the close of the corporation’s year.)
Corporations are permitted a six-month extension with two exceptions. First, calendar-year corporations are entitled to a five-month extension until 2026. And second, corporations with a June 30 year-end are entitled to a seven-month extension until 2026.
When do these changes take effect?
These changes take effect for due dates after December 31, 2015. However, for C corporations with fiscal years ending on June 30, the new due dates will not apply until tax years beginning after Dec. 31, 2025.
Original Post By: Michael DeBlis
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